MFW - 30 years old, no kids, just a helluva mortgage

tina01904

Hi Victoria Plum

I have had an interest only mortgage for 6 years now and find it brilliant! Like you I had to take out interest only at the time as the difference between the monthly payments was massive but i've now found that paying the regular monthly payment and making overpayments has been a much better way of doing things and I've had a better quality of life and paid off more of my mortgage than I would have if i had been on a repayment mortgage for the last 6 years. Having paid off £23k over the life of the mortgage I very much doubt I would have been able to do that if I'd been on repayments.

When I make an overpayment I ask that they recalculate my monthly payments and they then go down. The capital remains at the lower amount at all times (unless you pay off more of take back the money you paid off) but the interest is calculated on the lower amount and therefore your payments are lower. The term of the mortgage makes no difference as interest on £x is interest on £x no matter how long the term.

I hope the above makes sense but as an advocator of interest only mortgages just let me know if you have any more questions.

Tina

thriftyminx13

Hello anyone reading this. So pay day has come around and was glad of it. January is always a long month post christmas.

January added up including spending £120 on ikea furniture and getting my car fixed £254 (all in the last week) so I had to dip into my savings. Also my interest payment came out of my mortgage too so it doesn't look as if I paid off as much as I could have. But have paid £550 off mortgage this month and have put the £ back in my savings.

February should be a better month but March is 5 weeks between pays so am going to have to not get too ahead of myself.

Am also going to see a couple of things on ebay and still waiting on my £50 cheque from yougov and £10 voucher from valued opinions.

hope you are all well TF13 x

wantabetterlife

Welldone thriftyminx, that is a great overpayment considering it is just after christmas :j

thriftyminx13

Not too much to update, think legacy of January has had a knock-on effect into February as I'm nearly out of money. eek.

But have sold some stuff on ebay (£54) and still waiting on vouchers (£60) from yougov and toluna. Which is the good news. But have things on for the next three weekends and "things" as we know are always expensive. My mate is coming over with her husband and wants to meet up, which is fine because I can just drive. I think though she's wanting me to drive them around but I live uber far from where they want to go and am fretting about diesel etc. The following weekend, meeting up with school ones and wkd after that a night out in dublin. Panic is setting in!!

TF13

madeupname1

thriftyminx13 wrote: »

Hello anyone reading this.

Hello:wave:

Welcome to the Boards and well done on your overpayments so far. Very jealous - I myself have not yet been able to make any yet!

Just wanted to note that it seems from your SOA that you have negative equity (mortgage £121k; house value £105K)? If that's right, I agree that its really important for you to work towards increasing your savings / making overpayments. Otherwise, if mortgage rates rise, you might find yourself stuck on a poor rate rather than be able to remortgage. A poor LTV left me stuck at Santander until I had made sufficient overpayments. Good luck - I shall keep an eye on your thread!:)

Sepa74

Hi Thrifty minx, I'm thinking of joining yougov surveys. Being sad I have read all the T&Cs and realised that if I get referred by someone, they will also get the value of the surveys I do in the first three months. I can't promise how many I will do, as I'm VERY busy with work, but if you're interested in referring me anyway, PM me.

thriftyminx13

Sepa74 wrote: »

Hi Thrifty minx, I'm thinking of joining yougov surveys. Being sad I have read all the T&Cs and realised that if I get referred by someone, they will also get the value of the surveys I do in the first three months. I can't promise how many I will do, as I'm VERY busy with work, but if you're interested in referring me anyway, PM me.

Thanks Sepa74 sent you a PM

thriftyminx13

Hi all, not sure if i'm going to be able to overpay too much, need to review finances.

good points are: got a work bonus ++++ but have used it for my other news, a new used car This has wrecked by savings and left me owing my parents £2k but I'm sorry its making me smile so can't feel too guilty.

Other purchases this month will iclude flights over to London in June for a family party. HAd been hoping for some flight sales but think as time ticks on there's little chance.

Hope you are all well, TF

thriftyminx13

So last month felt like the longest month in the world!! 5 weeks between pay. nightmare.

Easter also fell within last month which, in my house, equals DIY time. That completely wiped out the pay but on the plus side our garden which had been a mud desert now has a lawn and a couple of bordered raised flowerbed areas. Can truly say it makes all the difference - let's hope th dog doesn't dig the good work up - he's already leaving little yellow marks everywhere.

Still haven't purchased the flights I need to go on at the end of the month which will cost money but good news is that my parents say I don't owe them £2k - birthday gift?!! many tears I am very lucky.

I do feel a little dispirited reading through some of the posts. A lot of people seem to be able to over pay £1500 a month etc, I don't even earn that in a month. I know you can't compare like for like but am I in the wrong career or what?! Always think I earn a good wage, but obviously not!

Hope all well TF

katsu

Hi thrifty,

There are lots of us making smaller OPs - better to make small OPs than to make none at all. I applaud the people making huge OPs but we are all living our own lives - don't let it put you off.

If you look at mine they are even virtual OPs due to the fact I got made redundant so don't want to make the payments until I know I am secure!